JP Morgan warns that the newly imposed US export restrictions on AI fleas could reduce a profit per share of 2025 per 10% for NVIDIA (NVDA, financial) and advanced (AMD, financial) micro devices. The analysis follows the American government’s decision to demand special licenses to export the M208 H20 and MI308 chips of AMD in China.
NVIDIA has already reported an inventory charge of $ 5.5 billion linked to interrupted shipments, while AMD is at a blow of $ 800 million. JP Morgan analysts, directed by Harlan on, believe that the raw assuming margins between 65% and 67% of the fees of $ 5.5 billion in Nvidia involve an impact on revenues of $ 15 billion at $ 16 billion, or about 8% of its $ 180 billion in expected data.
For AMD, the impact of the expected profits is also steep. JP Morgan assumes a margin of 45% to 55% on the expected inventory costs of $ 800 million in AMD, translating by $ 1.5 billion to $ 1.8 billion in income risk in a GPU segment of planned dollars and $ 16 billion in total data of data.
In total, the company expects the merchant GPU revenue losses of Nvidia and AMD to rave 8% to 10% reduction on their profits in 2025, stressing how geopolitical policies weighed directly on the history of growth in the ia flea sector.
This article appeared for the first time on Gurufocus.